INVL Technology had a first-quarter net profit of EUR 279,000

The equity and the net asset value of INVL Technology, a company that invests in IT businesses, were EUR 43.81 million at the end of March this year, or EUR 3.6281 per share, and grew 0.64% from the start of the year.

INVL Technology had an unaudited net profit of EUR 279,000 in the first quarter of 2024, compared to a loss of EUR 373,000 in the same period last year.

“This year INVL Technology is starting the sale of its portfolio companies. NRD Cyber Security, Novian and NRD Companies employ talented people in the fields of cybersecurity, artificial intelligence, supercomputing and information systems development and implementation. The companies serve important international clients and are leaders in their niches, having developed distinctive technologies and know-how. Talented and successful companies are in demand all over the world, and INVL Technology welcomes expressions of interest from international and regional investors,” says Kazimieras Tonkūnas, INVL Technology’s managing partner.

“Our companies’ strong performance, increased profitability and positive outlook are grounds to expect good results,” he adds.

Performance of INVL Technology’s business holdings

INVL Technology’s portfolio companies had aggregated revenues of EUR 14.06 million in the first quarter of this year, or 3% more than in the same period last year. Their gross profit increased 23.4% in the same period in comparison to EUR 4.24 million, while their aggregated EBITDA grew 3.6 times larger to EUR 1.09 million.

In January-March 2024, the companies’ revenue in Lithuania was EUR 9.6 million, which is 8.4% more than in the same period last year, while their revenue abroad decreased by 7.1% to EUR 4.46 million.

INVL Technology owns and manages the cybersecurity company NRD Cyber Security, the GovTech company NRD Companies, and the Baltic IT company Novian.

NRD Cyber Security, which also owns NRD Bangladesh, increased its consolidated revenue by 54.5% year-on-year to EUR 1.54 million in the first quarter of 2024. Its gross profit grew 14.9% in the same period of comparison to EUR 0.87 million as its EBITDA rose 71.5% to EUR 0.26 million.

NRD Companies had consolidated revenue of EUR 2.59 million in January-March, 10.2% more than in the first quarter of 2023, and a consolidated gross profit of EUR 1.24 million (versus EUR 0.94 million in January-March 2023). The EBITDA of the NRD Companies group grew 15.2% to EUR 0.28 million. Norway-based NRD Companies has the subsidiaries Norway Registers Development in Norway, with a branch in Lithuania, and NRD Systems and Etronika in Lithuania.

Novian had aggregated revenues of EUR 8.86 million in the first quarter of 2024, which is 7.6% less than in the first quarter of 2023. Its gross profit of EUR 1.84 million was 26.6% larger than the year-earlier figure (EUR 1.45 million). The Novian group’s EBITDA grew in the first quarter of this year to EUR 0.53 million, compared to a loss of EUR 0.09 million in the same period last year. The group consists of Novian in Lithuania with the technology-area businesses Novian Technologies, Zissor in Norway, Novian Eesti in Estonia, Andmevara in Moldova, and Norway Registers Development Rwanda in Rwanda, and the software services businesses Novian Systems and Novian Pro in Lithuania.

In mid-March this year, the company announced that it had signed an agreement with the Zurich branch of M&A intermediation service provider Corum Group’s Luxembourg-based unit Corum Group International, to advise and serve as M&A intermediary on the sale of the company’s portfolio of businesses.

INVL Technology, which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics, is a closed-end investment company which must exit its investments no later than mid-July 2026 and distribute the money to shareholders.

Important information

This is a marketing communication of an information nature, which is not and shall not be construed as an offer to purchase investment shares of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any individual investor.

When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the articles of association, prospectus and other documents of the respective collective investment undertaking.